44.5 billion dirhams, Dubai Financial’s gains in a week

The Dubai Financial Market closed last week’s trading with an increase of 3.97%, or the equivalent of 255.64 points, at the level of 6691 points, supported by a collective rise in sectors, led by real estate and banks, in addition to the listed companies’ continued disclosure of strong business results for the fourth quarter of last year.

The market capitalization of Dubai Financial rose to 1.1072 trillion dirhams at the end of the week’s session yesterday, compared to 1.0627 trillion dirhams at the end of the previous week’s trading, with gains amounting to about 44.5 billion dirhams.

The market performance was supported by a collective rise in sectors, led by the real estate sector by 6.69%, and the banks by 3.7%, in addition to an increase in the industrial sector by 3.65%, public utilities by 2.6%, and communications by 1.94%.

Shares listed on the Dubai Financial Market attracted liquidity exceeding 4.78 billion dirhams, after trading about 1.5 billion shares and executing 78,150 transactions.

During last week’s transactions, foreign (non-Arab) investors in the market tended to buy, with a net investment amounting to about 736.02 million dirhams, after they recorded purchases worth more than 2.11 billion dirhams, compared to sales worth 1.38 billion dirhams.

In addition, the Abu Dhabi Securities Market ended last week’s trading with an increase of 2.74%, closing at 10,563.11 points.

Market capitalization rose to about 3.1989 trillion dirhams at the end of last week’s session, compared to 3.1344 trillion dirhams at the end of the previous week’s trading, with gains of about 64.45 billion dirhams.

Shares listed on the Abu Dhabi Securities Market attracted, during last week’s transactions, liquidity exceeding 8.155 billion dirhams, after trading about 1.97 billion shares and executing 131.91 thousand transactions.

For his part, Rania Gul, chief market analyst at XS.com in the Middle East and North Africa region, confirmed that “the Dubai Financial Market witnessed a remarkable rise that returned the index to new record levels, in a clear reflection of the improvement in investor appetite and the return of purchasing momentum, supported by high liquidity and foreign investor flows, in addition to the strength of the results of leading companies and the cohesion of the economic environment in Dubai.”

Gul added to Emirates Today that the strong rises clearly reflect that the market is experiencing a phase of “healthy momentum,” and not just a short wave, as it was an extension of a path that actually began since the end of January, when it rose by 6.42%, which indicates that the upward trend has become supported by confidence and continuity.

She pointed out that the increase in net foreign investment (non-Arabs), during last week’s transactions, reflects an “investment decision” and not just “speculative” trading, supported by clear attractive factors, most notably the economic stability enjoyed by the market, transparency, good liquidity, and a regulatory environment capable of protecting investment.”

Gul emphasized that this type of flows often means that there is a gradual building of positions in leading stocks, which creates support for the market even in periods of volatility, indicating that the continuation of this path is linked to the presence of additional incentives, such as the strong results of listed companies.